Would You Walk Away or Take the Risk?

[David Litt]

Imagine this:

You find a property in a great neighborhood. The numbers are solid, comps look great, and rental demand is strong. But here’s the catch:

• The seller admits there’s a foundation issue that hasn’t been addressed.

• There’s a pending insurance claim that might delay closing.

• The city is talking about rezoning the area, which could affect future property values.

You’ve run the numbers and, if everything goes right, the upside is huge. But if even one of these issues goes sideways, it could become a money pit.

What would you do?

• Walk away and wait for a cleaner deal?

• Negotiate a deeper discount and take the risk?

• Or structure something creative to minimize your exposure?

I’d love to hear how others in the community would handle a scenario like this.